Can I Pay Staff Weekly and Monthly at the Same Time

Introduction

There is no legal requirement that all employees must be paid on the same schedule. Employers in the UK are free to choose how often they pay their staff, as long as they follow the terms of each employee’s contract and comply with HMRC reporting rules.

Some organisations prefer weekly pay for casual or part-time workers and monthly pay for full-time or senior staff. This approach can improve cash flow and suit different employment arrangements, but it also adds complexity to payroll management.

Can staff be paid on different schedules

Yes. You can pay some employees weekly and others monthly, provided the arrangement is clearly set out in their employment contracts and you manage payroll correctly for each group.

The key is to ensure that each employee is paid consistently on the agreed schedule and that tax and National Insurance (NI) are calculated accurately for their pay frequency.

For example, your charity or business might choose to:

Pay retail or hospitality staff weekly.

Pay office or management staff monthly.

Pay contractors or freelancers on an ad-hoc basis.

As long as these arrangements are clear and compliant, HMRC will accept multiple pay frequencies.

How payroll frequency affects PAYE reporting

If you pay employees on different schedules, you must set up separate pay runs in your payroll software. Each pay run represents a reporting period to HMRC under the Real Time Information (RTI) system.

This means:

Weekly staff have 52 pay periods per year.

Monthly staff have 12 pay periods per year.

You must submit a Full Payment Submission (FPS) to HMRC on or before each pay date for each pay group. For example, if you pay weekly staff every Friday and monthly staff on the last day of the month, you will need two FPS submissions in most months.

Failing to report on time for each pay group can lead to penalties or incorrect tax calculations.

Setting up payroll for different pay groups

Most modern payroll software can handle multiple pay frequencies. When setting up your system:

Create separate payroll schedules for weekly, fortnightly, and monthly pay.

Assign each employee to the correct pay frequency.

Ensure tax codes and NI categories are applied consistently.

Record pay periods accurately to avoid overlapping or duplicate submissions.

Using professional payroll software or outsourcing to an accountant helps ensure that calculations and submissions are made correctly every time.

Benefits of paying staff on mixed schedules

Flexibility: Weekly pay can help casual or lower-income workers manage their finances more easily, while monthly pay suits salaried roles.

Attraction and retention: Offering flexible pay options can make your organisation more appealing to different types of employees.

Cash flow management: Paying some staff weekly can spread wage costs more evenly across the month.

However, the administrative workload can increase, so it is important to weigh the benefits against the extra effort required.

Challenges of running mixed payrolls

Increased administration: Running separate pay runs each week and month means more frequent processing and reporting to HMRC.

Greater risk of errors: Different schedules can make it easier to miss deadlines or make calculation mistakes if records are not kept carefully.

Holiday pay and pension calculations: These must align with each employee’s pay frequency, requiring careful tracking.

Communication: Staff must understand when they will be paid and how deductions are calculated.

Using clear payroll procedures and good software helps reduce these risks.

Payroll best practice for mixed payment schedules

Keep contracts clear: Each employee’s contract should specify whether they are paid weekly or monthly, and on what day.

Use reliable payroll software: Choose a system that supports multiple pay frequencies and automatic HMRC submissions.

Maintain a payroll calendar: Record all pay dates and submission deadlines for each group to avoid missed filings.

Automate where possible: Set reminders or automated runs to streamline processing.

Reconcile regularly: Check bank payments, tax deductions, and pension contributions after each pay run to ensure accuracy.

Following these steps keeps payroll efficient even when managing multiple schedules.

National Minimum Wage and pay frequency

Regardless of whether you pay weekly or monthly, employees must still receive at least the National Minimum Wage or National Living Wage based on their total hours worked during the pay reference period.

For weekly staff, the reference period is one week. For monthly staff, it is one month. Always monitor hours and earnings carefully to stay compliant.

Pension and auto-enrolment considerations

If your organisation operates a workplace pension scheme, you must ensure contributions are calculated and submitted according to each employee’s pay frequency.

Weekly-paid staff will have smaller, more frequent contributions, while monthly-paid staff will have larger, less frequent ones. Your pension provider or accountant can help set up the correct schedule to match your payroll system.

Tax and National Insurance calculations

HMRC’s PAYE system automatically adjusts tax and NI calculations based on the pay period. For example:

Weekly-paid staff are taxed based on 52 pay periods per year.

Monthly-paid staff are taxed based on 12 pay periods per year.

If an employee changes from weekly to monthly pay (or vice versa), you must update their payroll record and ensure that the transition aligns with HMRC’s tax period calculations to prevent overpayment or underpayment.

Common mistakes to avoid

Mixing pay dates without updating HMRC submissions.

Paying staff off-cycle (outside their normal schedule) without reporting correctly.

Using one payroll record for staff on different schedules.

Forgetting to adjust pension or student loan deductions when staff change pay frequency.

Failing to provide accurate payslips for each payment period.

Avoiding these mistakes keeps payroll compliant and prevents confusion for employees.

Can employees switch between weekly and monthly pay

Yes, but any change should be agreed in writing and reflected in their employment contract. Ensure that payroll records, pension contributions, and tax calculations are updated to match the new pay frequency.

It is best to make such changes at the start of a new tax month or quarter to avoid overlapping pay periods. Always inform HMRC of the change through your next payroll submission.

Conclusion

You can pay some staff weekly and others monthly as long as each employee’s pay frequency is clearly defined, properly managed, and correctly reported to HMRC. Running multiple payrolls increases administration, but with the right systems and processes, it can be done smoothly.

By keeping contracts clear, using good payroll software, and maintaining accurate records, your organisation can pay everyone on time, stay compliant with tax rules, and maintain the flexibility your staff need.